US-based health insurance provider Independence Health Group (IHG) has partnered two investment firms to launch a $6m funding program to boost digital healthcare startups in Philadelphia.
The two firms are early-stage investor Ben Franklin Technology Partners of Southeastern Pennsylvania – which is funded by Ben Franklin Technology Development Authority, a state of Pennsylvania initiative to support investment in tech-oriented businesses – and Safeguard Scientifics, which backs healthcare, financial services and digital media businesses.
IHG, a nonprofit investing through its subsidiary Independence Blue Cross, which offers health insurance to residents of the Philadelphia region, will commit $2m to the program, as will Ben Franklin and Safeguard. The $6m will be allocated over a four-year period.
Each investor will source business opportunities and guide seed-stage companies, while Ben Franklin will lead the due diligence process for eligible startups and oversee the day-to-day operations of the fund.
Daniel J. Hilferty, president and CEO of IHG, said: “[IHG] is committed to developing and supporting the next generation of digital health entrepreneurs and helping our region become a global center for health care innovation.”
“We want to champion healthcare entrepreneurship in our region and could not have found better partners for turning game-changing ideas into real world applications that will improve our members’ well-being.”
IHG, Ben Franklin and Safeguard are also part of a group of founding members that set up Healthcare Innovation Collaborative last May. The Collaborative brings together corporates, academic research institutions and venture capital firms to find treatments for chronic diseases, which account for 86% of US healthcare costs.